NXST Should I Buy
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Nexstar Media Group Inc (NXST) is not a strong buy for a beginner, long-term investor at this moment. Despite positive analyst sentiment and potential upside from the Tegna acquisition, the company's recent financial performance is weak, with significant declines in revenue, net income, and EPS. Additionally, insider selling and legal challenges surrounding the merger add to the uncertainty. While the technical indicators show a neutral trend and options data suggests low bearish sentiment, the lack of strong proprietary trading signals and mixed catalysts make it prudent to hold off on buying at this time.
The MACD histogram is positive and contracting, indicating a neutral to slightly bullish trend. RSI is at 60.814, in the neutral zone, with no clear overbought or oversold signal. Moving averages are converging, suggesting indecision in the market. Key support and resistance levels are at S1: 185.325 and R1: 209.097, with the pre-market price near resistance levels at 205.55.
Analysts have upgraded the stock with a Buy rating and a price target of $220, citing a favorable risk-reward ratio.
Completion of the Tegna acquisition could lead to long-term value creation and scale advantages.
Legal challenges surrounding the Tegna merger, including a temporary restraining order, create uncertainty.
Insider selling has increased significantly, which may indicate a lack of confidence from management.
Weak financial performance in Q4 2025, with significant declines in revenue, net income, and EPS.
In Q4 2025, revenue dropped by 13.32% YoY to $1.289 billion. Net income fell sharply by 166.28% YoY to -$171 million, and EPS declined by 168.70% YoY to -$5.64. Gross margin also decreased to 41.27%, down 13.44% YoY. These metrics indicate poor financial health and declining profitability.
Analysts are generally positive on NXST, with multiple Buy ratings and price targets ranging from $220 to $300. The most recent upgrade by Citi highlights a 9:1 risk-reward ratio, assuming successful divestitures from the Tegna deal. However, some price targets have been lowered due to legal uncertainties surrounding the merger.
